Council of State, public service, regulatory power, public-private partnerships, economic freedom, competition, territorial autonomy, local authorities, administrative subsidiarity
The Council of State's decision on the regulatory extension of mission support skills for public service organization, and its implications on public-private partnerships and economic freedom.
[...] The Order argued that this decree disregarded the fundamental principles of freedom of trade and industry, by allowing the State to intervene in markets reserved for private operators, and thus exceeded the authorization given by the ordinance of June which only authorized a prior evaluation of the contracts. The lawyers also formulated another criticism: the State's intervention through this support mission risked creating a distortion of competition. Furthermore, the Order raised a complaint related to the constitutional principle of free administration of territorial collectivities, which could be influenced or constrained in the management of their contracts. [...]
[...] The consecration of the regulatory extension of the mission support skills: a public service organization in accordance with the law A regulatory power adapted to the evolution of public needs The consecration of a broad and flexible executive power in the organization of public services (article 37 of the Constitution, Article 21 of the Constitution Decision CE August 1919, Labonne). The State as guarantor of administrative efficiency in complex projects (The State is here perceived as a 'catalyst » here that allows to overcome the technical, legal and financial challenges faced by public entities). [...]
[...] It notably found that the support mission, as an organization providing technical support to public bodies, did not infringe on the freedom of commerce and industry, as it did not substitute for private actors and did not intervene on the market in a competitive manner. Furthermore, it found that this assistance remained facultative for local authorities and therefore involved no constraint. As a result, it fully respects the principle of free administration of local authorities. Thus, this ruling raises the question of how the State can intervene in the framework of public-private partnerships while respecting the fundamental principles of economic freedom, competition, and territorial autonomy of local authorities? [...]
[...] (Article 21 of the Constitution of 4 October 1958). This constitutional provision dedicates the idea that the executive can organize public services without the intervention of the legislature, within the framework of its constitutional powers (as defined in Article 37 of the Constitution). This principle is at the heart of the Council of State's decision of 31 May 2006, Order of Attorneys at the Paris Bar, which confirms the legitimacy of the State to resort to this power to respond to exigences complexities of the modernization of public action, particularly in the framework of public-private partnerships. [...]
[...] A ruling in line with contemporary developments in public economic law The emergence of a European public economic law (The ruling illustrates a broader trend in administrative law to adapt to the requirements of the globalized market, particularly in light of public-private partnerships). A new frontier for public intervention in the economy: a facilitative State (The ruling marks a step in the redefinition of public intervention: the State becomes a facilitator, technically accompanying public authorities, without distorting the rules of the economic game). [...]
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